A06762 Summary:

BILL NOA06762
 
SAME ASSAME AS S01737
 
SPONSORSolages
 
COSPNSRMitaynes, Bichotte Hermelyn
 
MLTSPNSR
 
Add 8, amd 2807, Pub Auth L; add 859-d, Gen Muni L; amd 1411, N-PC L
 
Establishes a local authorities searchable subsidy and economic development benefits database; relates to the obligations of certain industrial development agencies and local development corporations.
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A06762 Actions:

BILL NOA06762
 
05/08/2023referred to corporations, authorities and commissions
01/03/2024referred to corporations, authorities and commissions
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A06762 Committee Votes:

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A06762 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6762
 
SPONSOR: Solages
  TITLE OF BILL: An act to amend the public authorities law, in relation to establishing a local authorities searchable subsidy and economic development benefits database; to amend the general municipal law, in relation to the obli- gations of certain industrial development agencies; and to amend the not-for-profit corporation law, in relation to the status of certain local development corporations   PURPOSE: To establish a local authorities searchable subsidy and economic devel- opment benefits database.   SUMMARY: Section 1. Amends the public authorities law by adding a new section 8. Section 2. Amends section 2807 of the public authorities law. Section 3. Amends the general municipal law by adding a new section 859-d. Section 4. Amends paragraph (i) of section 1411 of the not-for-profit corporation law and adds a new section (j). Section 5. Sets the effective date.   JUSTIFICATION: New York State and local governments grant billions of dollars in subsi- dies each year to promote economic development. However, it is difficult to determine the effectiveness ofthis spending. In the 2022 state budg- et, a database of deals was created for the public to have a resource to search this information. Unfortunately, the Authorities Budget Office and local industrial development agencies were not included in this initiative. Establishing a local authorities searchable subsidy and economic development benefits database in NYS would increase transparen- cy, enabling the public to better understand how their tax dollars are being used to support economic development. The database would also improve accountability by allowing policymakers to track the impact of subsidies, allocate resources effectively and evaluate whether those investments are generating the expected returns and job creation. Creat- ing a searchable and accessible database will ensure that taxpayer funds are being used effectively and efficiently.   RACIAL JUSTICE IMPACT: TBD.   GENDER JUSTICE IMPACT: TBD.   LEGISLATIVE HISTORY: 2021-22: A6240; referred to economic development. 2019-20: A8444; referred to economic development.   FISCAL IMPLICATIONS: TBD.   EFFECTIVE DATE: This act shall take effect on the ninetieth day after it shall have become a law.
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A06762 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6762
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                       May 8, 2023
                                       ___________
 
        Introduced  by  M.  of A. SOLAGES, MITAYNES -- read once and referred to
          the Committee on Corporations, Authorities and Commissions
 
        AN ACT to amend the public authorities law, in relation to  establishing
          a  local authorities searchable subsidy and economic development bene-
          fits database; to amend the general municipal law, in relation to  the
          obligations  of  certain industrial development agencies; and to amend
          the not-for-profit corporation law,  in  relation  to  the  status  of
          certain local development corporations
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1.  The public authorities law is  amended  by  adding  a  new
     2  section 8 to read as follows:
     3    §  8.  Local  authorities  searchable subsidy and economic development
     4  benefits database. (1) For the purposes of this section,  the  following
     5  terms shall have the following meanings:
     6    (a) "Economic development benefits" shall mean:
     7    (i) funds made available by a local authority, including without limi-
     8  tation  any  entity  created  incorporated  pursuant to section fourteen
     9  hundred eleven of  the  not-for-profit  corporation  law,  for  economic
    10  development,  or  job  creation  purposes including, but not limited to,
    11  grants, loans, loan guarantees, loan interest subsidies, and  subsidies;
    12  and
    13    (ii)  tax  credits,  tax  exemptions,  reduced  tax rates or other tax
    14  incentives which are applied for and preapproved or certified by  or  on
    15  behalf  of  a  local  authority, including without limitation any entity
    16  created incorporated pursuant to section fourteen hundred eleven of  the
    17  not-for-profit corporation law, for economic development.
    18    (b)  "Additional state economic development benefits" shall mean those
    19  economic development benefits made available  to  the  local  authority,
    20  including without limitation any entity created incorporated pursuant to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03696-01-3

        A. 6762                             2
 
     1  section  fourteen  hundred eleven of the not-for-profit corporation law,
     2  by a state entity to award such benefits to qualified recipients.
     3    (c)  "Qualified  participant"  shall  mean a person, business, limited
     4  liability corporation or any other  entity  that  has  applied  for  and
     5  received benefits as defined in paragraph (a) of this subdivision.
     6    (d)  "Full-time  equivalent"  shall  mean  a unit of measure, which is
     7  equal to one filled, full-time, annual-salaried position.
     8    (e) "Project hires" shall mean a job in which an individual  is  hired
     9  for a season or for a limited period of time.
    10    (f)  "Part-time  job"  shall  mean  a  job  in  which an individual is
    11  employed by a qualified participant for less than  thirty-five  hours  a
    12  week.
    13    (g) "The office" shall mean the authorities budget office.
    14    (i)  "The  database" or "the searchable database" shall mean the data-
    15  base created pursuant to subdivision two of this section.
    16    (j) "the project" shall mean specific work, action, endeavor, contract
    17  or agreement for which any economic benefit as defined in paragraphs (a)
    18  and (b) of this subdivision, is made available or  awarded  by  a  local
    19  authority  to,  including without limitation any entity created incorpo-
    20  rated pursuant to section fourteen hundred eleven of the  not-for-profit
    21  corporation law, to a person, business, limited liability corporation or
    22  any other entity.
    23    2. Notwithstanding any laws to the contrary, the office shall create a
    24  searchable  database,  displaying  data  regarding  economic development
    25  benefits that a qualified participant has been  awarded.  Such  database
    26  shall  also  separately display data regarding additional state economic
    27  development benefits and the aggregate  total  of  benefits  defined  in
    28  paragraph  (a)  of  subdivision  one of this section, to the extent that
    29  such data has been made available to and is received by  the  office  in
    30  the  form  and manner prescribed by the office. Such searchable database
    31  shall include, at a minimum, the following data, features and  function-
    32  ality to the extent practicable:
    33    (a)  the ability to search the database by each of the reported infor-
    34  mation fields;
    35    (b) the ability to be searchable, downloadable, and updated quarterly,
    36  and posted on a publicly accessible website as well as referenced on the
    37  office's website, with a direct link to the database;
    38    (c) the following data on projects shall be included:
    39    (i) a qualified participant's name and project, project location,  the
    40  project's  complete address, including the postal code in a separate and
    41  searchable field, and the economic region of the state;
    42    (ii) the time span over which a qualified participant is to receive or
    43  has received aggregate economic development benefits;
    44    (iii) the type of such economic development benefits,  as  defined  in
    45  paragraph  (a)  of subdivision one of this section, provided to a quali-
    46  fied participant, including the name of the program or programs  through
    47  which  such  benefits  are  provided,  and  details  as  to whether such
    48  programs are grants or tax credit programs as a separate and  searchable
    49  field.  Such  data  shall  be provided to the extent practicable for all
    50  contracts initiated six months after the effective date of this section;
    51    (iv) the total number of employees  at  all  entities  utilizing  such
    52  economic development benefits as defined in paragraph (a) of subdivision
    53  one  of this section, at the time of the agreement, including the number
    54  of full-time equivalents, provided that any project hires  or  part-time
    55  jobs shall be displayed in separate fields and may be converted to full-

        A. 6762                             3
 
     1  time  equivalents and denoted as such, to the extent practicable for all
     2  contracts initiated six months after the effective date of this section;
     3    (v)  for any economic development benefits as defined in paragraph (a)
     4  of subdivision one of this section that provides for  job  retention  or
     5  job  creation,  that a qualified participant has been awarded, the total
     6  job creation commitments, job retention commitments, job creation actual
     7  number, and the job retention actual number, displayed in terms of full-
     8  time equivalents where any  project  hires  or  part-time  jobs  may  be
     9  converted to full-time equivalents and denoted as such, the actual aver-
    10  age  wage  by  occupation  or job classification and total payroll to be
    11  created as a result of the benefits, shall be provided,  each  displayed
    12  as separate and searchable fields;
    13    (vi)  the  total  and separate amount of economic development benefits
    14  defined in paragraph (a) of subdivision one of this section received  by
    15  a qualified participant to date;
    16    (vii)  the  total  public-private  investment made to a project, total
    17  public funding received by a project, and project status;
    18    (viii) details related to  individual  project  compliance  indicating
    19  whether,  during  the current reporting quarter, the entity managing the
    20  award has reduced, cancelled, or  recaptured  any  economic  development
    21  benefits or additional state economic development benefits from a quali-
    22  fied participant, and, if so, the total amount of the reduction, cancel-
    23  lation, or recapture. Separately, a notation of penalties assessed shall
    24  be  displayed in a separate and searchable field, as well as the reasons
    25  therefor in another separate and searchable field;
    26    (ix) the ability to digitally select defined individual fields  corre-
    27  sponding  to any of the reported information from qualified participants
    28  to create unique database views;
    29    (x) the ability to download the database in its entirety, or in  part,
    30  in a common machine readable format;
    31    (xi) a definition or description of terms for fields in the database;
    32    (xii)  a summary of each separate economic development benefit defined
    33  in paragraph (a) of subdivision one of this section awarded to qualified
    34  participants;
    35    (xiii) a user-friendly guide to outline the features and functionality
    36  of the database; and
    37    (xiv) a dedicated email account for the  public  to  direct  questions
    38  related  to  the  database, and the office mailing address, office tele-
    39  phone number, and name of the chief officer of the granting body.
    40    3. Data related to subparagraphs (i) through (vi) of paragraph (c)  of
    41  subdivision  two of this section shall be analyzed for quality and accu-
    42  racy by the entity or authority  providing  such  funding  to  qualified
    43  recipients  and  managing the contracts related thereto. Upon submission
    44  of such data to the office for inclusion in the database,  all  awarding
    45  entities  shall  certify  to  the office that each field of project data
    46  accurately summarizes project investments and amounts  and  contains  no
    47  known misrepresentation of material facts.
    48    4.  Upon  request  the  office  shall  provide,  or direct to a source
    49  providing, in an electronically accessible and  downloadable  form,  any
    50  contracts  or award agreements for projects included in the database, to
    51  the extent such contracts or  award  agreements  are  available  to  the
    52  public  pursuant  to article six of the public officers law or any other
    53  law.  Such contracts may, upon request from the office, be shared by the
    54  entity holding and managing such contract.
    55    5. The office may request any data from qualified participants that is
    56  necessary and required in  developing,  updating,  and  maintaining  the

        A. 6762                             4

     1  searchable  database. Such qualified participants shall provide any such
     2  information requested by the office.
     3    6.  The  office  shall  prescribe the form and manner in which a local
     4  authority awarding other  state  agency  economic  development  benefits
     5  shall  submit information and data regarding other state agency benefits
     6  as required for developing, updating, and maintaining the  database  and
     7  publish  guidelines  as  needed  to  facilitate  receipt of such data to
     8  comply with the provisions of this  section,  including  the  submission
     9  provisions of subdivision three of this section. The corporation, to the
    10  extent  practicable,  shall note on the database where a state agency or
    11  authority failed to submit the required data.
    12    7. To effectuate the purposes of this section, the office may  request
    13  and  shall receive from any department, division, board, bureau, commis-
    14  sion or other agency of the state, or any state or local public authori-
    15  ty such assistance, information and data as will enable  the  office  to
    16  carry out its powers and duties under this section.
    17    §  2. Section 2807 of public authorities law, as added by section 3 of
    18  part NNN of chapter 58 of the laws  of  2022,  is  amended  to  read  as
    19  follows:
    20    §  2807.  1.  Reporting  for  searchable  state  subsidy and aggregate
    21  economic  development  benefits  database.  Notwithstanding  any   other
    22  provision  of law to the contrary, every state authority shall submit to
    23  the urban development corporation, and update quarterly, in the form and
    24  manner prescribed by the urban development corporation, any and all data
    25  and information as necessary for developing, updating,  and  maintaining
    26  the  database established in section fifty-eight of section one of chap-
    27  ter one hundred seventy-four of the  laws  of  nineteen  hundred  sixty-
    28  eight,  constituting  the  New  York state urban development corporation
    29  act, regarding economic development benefits, as such term is defined in
    30  such section, awarded by such state authority.  A  state  authority  may
    31  request and shall receive any data from an individual, business, limited
    32  liability  corporation  or  any  other  entity  that has applied for and
    33  received approval for, or is  the  beneficiary  of,  any  such  economic
    34  development  benefits,  as is necessary and required to comply with this
    35  section.
    36    2. Notwithstanding any other provision of law to the contrary, a local
    37  authority shall submit to the  authorities  budget  office,  and  update
    38  quarterly,  in  the form and manner prescribed by the authorities budget
    39  office, any and all data and information as  necessary  for  developing,
    40  updating,  and maintaining  the database established in section eight of
    41  the public authorities law, regarding economic development benefits,  as
    42  the term is defined therein, awarded by such authority. A local authori-
    43  ty  may  request  and  shall  receive  any data from a person, business,
    44  limited liability corporation or any other entity that has  applied  for
    45  and  received  approval  for or is the beneficiary of, any such economic
    46  development benefits, as is necessary and required to comply  with  this
    47  section.
    48    §  3.  The  general  municipal  law is amended by adding a new section
    49  859-d to read as follows:
    50    § 859-d. Reporting for the local authorities  searchable  subsidy  and
    51  economic   development  benefits  database.  Notwithstanding  any  other
    52  provision of law to the contrary, an industrial development agency shall
    53  submit to the authorities budget office, and update  quarterly,  in  the
    54  form and manner prescribed by the authorities budget office, any and all
    55  data  and  information as necessary for developing, updating, and  main-
    56  taining  the database established in section eight of the public author-

        A. 6762                             5
 
     1  ities law, regarding economic  development  benefits,  as  the  term  is
     2  defined  therein,  awarded  by  such  industrial  development agency. An
     3  Industrial Development agency may request and  shall  receive  any  data
     4  from  a  person,  business,  limited  liability corporation or any other
     5  entity that has applied for and received approval for or is the  benefi-
     6  ciary  of,  any  such economic development benefits, as is necessary and
     7  required to comply with this section.
     8    § 4. Paragraph (i) of section 1411 of the  not-for-profit  corporation
     9  law is amended and a new paragraph (j) is added to read as follows:
    10    (i) Effect of section.
    11    Corporations  incorporated  or reincorporated under this section shall
    12  be organized and operated exclusively for  the  purposes  set  forth  in
    13  paragraph  (a)  of  this  section, shall have, in addition to the powers
    14  otherwise conferred by law, the powers conferred  by  paragraph  (c)  of
    15  this  section  and  shall be subject to all the restrictions and limita-
    16  tions imposed by paragraph (e) [and], paragraph (g), and  paragraph  (j)
    17  of  this section. In so far as the provisions of this section are incon-
    18  sistent with the provisions of any other law, general  or  special,  the
    19  provisions  of  this  section  shall  be  controlling as to corporations
    20  incorporated or reincorporated hereunder.
    21    (j) Public authorities law.
    22    Notwithstanding any other provision of law to the contrary,  a  corpo-
    23  ration  incorporated  or  reincorporated  under  this  section  shall be
    24  considered a local authority under the public authorities  law,  and  be
    25  subject  to  the provisions of section twenty-eight hundred seven of the
    26  public authorities law.
    27    § 5. This act shall take effect on the ninetieth day  after  it  shall
    28  have become a law.
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